"Ethical" stocks and share ISA

edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
3 replies 1.2K views
picju96picju96 Forumite
16 Posts
edited 30 November -1 at 1:00AM in ISAs & Tax-free Savings
Hello,
Is it possible to get an "ethical" stocks and shares ISA? e.g. I wouldn't want to invest in tobacco companies and many funds seem to include these (presumably because they do quite well?)

Very new to investing and just trying to find out more before jumping in!

Thanks

Replies

  • dunstonhdunstonh Forumite
    106.7K Posts
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭✭✭
    s it possible to get an "ethical" stocks and shares ISA?

    yes

    Funds which class themselves as ethical are either positive, neutral or negative to a particular industry (i.e. avoid, indifferent or target). So, when you research, you need to match your ethics with the fund ethics. This is typically done by completing an ethical questionnaire which can then be used to filter funds to leave you with the ones that match your ethical position.
    e.g. I wouldn't want to invest in tobacco companies and many funds seem to include these (presumably because they do quite well?)

    You do have to accept that by going ethical, you are going to compromise your returns. There is usually a general risk warning added to ethical investments that you are likely to get lower returns over the long term because of the restrictions.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • picju96picju96 Forumite
    16 Posts
    Perfect, thanks! Good to know that they are out there - I need to look a bit harder.
  • jimjamesjimjames Forumite
    14.5K Posts
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    ✭✭✭✭✭
    Bear in mind that an ISA is just a wrapper so is neither ethical or anything else. What can be ethical is what you actually put in it so either choose shares you think are suitable (risky unless diversified) or buy an ethical fund that has already done the filtering for you - but may not meet your ethical definitions.
    Remember the saying: if it looks too good to be true it almost certainly is.
This discussion has been closed.
Latest MSE News and Guides

Energy price cap could be extended beyond 2023

New plans have just been announced by the Government

MSE News

Cheap contents insurance for tenants

DON'T assume your landlord covers you

MSE Guides

Summer sizzlers round-up

Incl £2ish sun cream & £1.50 disposable BBQs

MSE Deals